After a significant surge, Dogecoin‘s price has trapped itself within a narrow range, reviving attention from market enthusiasts. A bullish flag pattern appearing on the hourly chart hints at the potential for a fresh wave of movement in the short term. Crypto analyst Ali Martinez suggests that confirmation of this pattern could lead to an approximate 30% rise in DOGE‘s price.
Key Levels to Monitor
Currently trading between $0.087 and $0.088, Dogecoin’s future movement hangs in balance at crucial junctures. For an upward scenario, Martinez tracks the need for an hourly close above the $0.090 resistance. Should this occur, the pattern could activate, with the initial target set at $0.115—a prospect indicating a potential 30% upswing based on current levels.
Ali Martinez notes that “an hourly close above $0.090 could confirm a bullish flag, paving the way to $0.115.”
On the downside, losing the $0.081 support is critical. Should the level be breached, the validity of the bullish flag could diminish, potentially leading sellers to dominate again, with prices possibly retreating towards $0.056 to $0.060 as they trend in a broader descending channel.
What Role Does Trading Volume Play?
A strong on-chain accumulation near $0.081 acts as a key technical element against deeper retracement. Approximately 30 billion DOGE changed hands in this region previously, creating a robust support zone that might provide stability during local pullbacks.
Around 30 billion DOGE previously traded near $0.081, making it a formidable support area against potential downturns.
Despite the short-term positive pattern, resistance pressure has not entirely dissipated in broader timeframes. The observed flag on the hourly chart develops within a larger falling wedge on the daily chart. Dogecoin recently attempted to breach the $0.10 psychological threshold but met resistance at the 200-day exponential moving average around $0.095.
- A breach above $0.090 may lead to a rise to $0.115.
- Losing $0.081 may signal a fall to $0.056-$0.060.
- Support near $0.081 is bolstered by heavy historical trading volumes.
The trading volumes at the end of August will be a significant determinant. Strengthening purchases could catalyze a breakout to the upside. If not, Dogecoin might continue a prolonged period of sideways trading within its current range.
